NEW DELHI: A bankruptcy court has approved the admission of a real estate developer from Gurgaon into the corporate insolvency resolution process (CIRP) following an application by IDBI Trusteeship Services. This action was prompted after the firm defaulted on dues totaling approximately Rs 274 crore.
The Chandigarh bench of the National Company Law Tribunal (NCLT) has designated Jayant Prakash as the interim resolution professional (IRP) to oversee the company’s proceedings.
IDBI Trusteeship, acting on behalf of non-convertible debenture (NCD) holders, submitted the case to the tribunal. Senior counsel Gopal Jain and advocate Meghna Mishra represented the trustee company, arguing that the default occurred in January 2024.
The lenders informed the tribunal that the Rs 274 crore default comprises a principal amount of Rs 146 crore, interest of Rs 29.37 crore, default interest of Rs 43.32 crore, and a fixed redemption premium of Rs 55.43 crore.
The lenders maintained that the NCDs were backed by a robust security arrangement, which included an equitable mortgage established through a memorandum of deposit of title deeds over about 6.64 acres of land owned by Aplin Developers Pvt Ltd, and around 5.575 acres held by Malvina Developers Pvt Ltd located in Village Harsaru, Gurgaon.
Senior advocate Anand Chibbar, representing Vatika Ltd, contended that the petition is fundamentally flawed, premature, and legally untenable.
The company claims that the NCDs were scheduled for redemption on June 30, 2022, as stipulated in the original trust deed. However, due to the project’s business necessities, the corporate debtor requested an extension, which was granted by the investment manager for the debenture holders, Indiabulls Asset Management Company Ltd, moving the redemption date to June 30, 2023, and subsequently to June 30, 2024.
The developer’s legal representatives argued, “These extensions were mutually agreed upon and contractually binding. Thus, when the petition was filed on January 24, 2024, the redemption date had not yet occurred, and any assertion of default was legally unfounded.”
